Question

1) How does Employment Influence Housing Demand? 

2) In what circumstances does Renting make more sense than owning? 

3) What does Seller Financing do to the interest rate which a Buyer Pays? 

4) Name two reasons why Properties are classified as "Distressed" Properties? 

5) What is the benefit of Purchasing a Distressed Property?

Answer 1

1. People change their locations based on their employment opportunities only. If I am working in Atlanta, I must stay in Atlanta or very near to the place only. I can not stay away from the place and can not travelled dailed of long distances. Hence, the employment opportunities in the location definitely impact on the demand and the cost of housing in the location.

2. When our profession is the one which we need to travel regularly, and we can not stay at one place or lacation, then it is better to go with rental rather than owning a house. Because, whenever we need to move to new place, it becomes more problem to us to dispose the old one and purchase the new one. Hence, in these conditions, it is better to go with rental than owning a house.

3. The financiers will collect some interest on the loan or fund provided to the house buyer. If the buyer has right track record, they may offer funds at lower cost and vice versa.

4. When a property is bought by a customer with help of loan from banker or financial institute, which has to repay later. But, due to any reasons, if the borrower fails to repay the obligation, then the property will be owned by the banker and announce it as distressed property.

the reasons are:

• if the person lost the job or employment
• the health conditions were failed
• the partners may take divorce
• other financial problems

5. It will be available at lesser cost than other properties and we can buy at less price.